Abdullah Al Othaim Markets Co. announces the interim financial results for the period ending on 31-03-2018 (Three Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 67.26 | 60.15 | 11.82 | 167.52 | -59.85 |
| Gross profit (loss) | 341.54 | 319.69 | 6.83 | 444.98 | -23.25 |
| Operational profit (loss) | 64.12 | 64.44 | -0.5 | 150.19 | -57.31 |
| Earning or loss per share, Riyals | 0.75 | - | - | - | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | Consolidated net profit increased by 11.82% compared with the same quarter of the previous year mainly due to the following reasons: - Sales growth by 6.02% due to expansion in new branches - Decrease in financing expenses due to the early settlement of long-term loans. - The results of the corresponding quarter includes a fire incident loss occurred at one of the branches amounting SR 3.5 million. The claim to reimburse losses was collected from the insurance company during the fourth quarter of 2017. |
| Reasons of increase (decrease) for quarter compared with previous quarter | Consolidated net income for the first quarter of the current year declined by 59.85% compared with the fourth quarter of the previous year mainly due to: - Drop in sales by 8.77% driven by lower demand. - The results of the previous quarter includes annual targets incentives from suppliers which is calculated and recognized at the end of the fiscal year. - The results of the previous quarter includes collecting insurance claim amounted SR 4.9 million to indemnify for the damages caused by a fire accident occurred at one of the Company branches during the first quarter of 2017. On the other hand, Financing expenses decreased in the current quarter due to the early settlement of long-term loans. |
| Reclassifications in quarterly financial results | Some comparative figures have been restated to be consistent with the presentation of the current period in accordance with the International Financial Reporting Standards (IFRS). Sales and cost of sales for the current and comparative periods have been restated in accordance with IFRS No. 15, by reducing both items against suppliers subsidies granted to customers on points of sale and vouchers sales. Sold vouchers were no longer recognized as sales. Instead, the related commission is being recognized and presented in a separate line. However, there are no financial impact of these restatements on net profit for the current and comparative figures. |
| Other notes | 1. Total sales for the current quarter is SR 1,798.26 million against SR 1,696.23 million for the same quarter last year with a growth of 6.02% and against SR 1,971.19 million for the previous quarter with a decline rate of 8.77%. 2. Total comprehensive income for the current quarter is SR 66.96 million against SR 59.60 million for the same quarter last year with an increase of 12.35% and against SR 162.68 million for the previous quarter with a decline rate of 58.84%. 3. Total shareholders' equity -net of non-controlling interest- as at the end of the current period is SR 1,561.81 million against SR 1,292.95 million at the same date last year with a growth of 20.79%. 4. On January 1st 2018 the Company has adopted IFRS 15 with no material impact on the financial statements. 5. Earnings per share for the current and comparative periods were restated to reflect the increase in the Company capital from 45 million shares to 90 million shares through capitalization pursuant to the resolution of the extraordinary general assembly on April 23, 2018. |
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